Columnist George F. Will recently penned an op-ed in The Washington Post declaring that Freddie Mac and Fannie Mae shareholders were receiving a raw deal from the federal government.

In a letter to the editor published on May 10, NAHB Chairman Ed Brady responded that taxpayers – not shareholders or hedge fund managers who invested in Fannie and Freddie – should be the focal point and that the real issue is the urgent need to fix our nation’s housing finance system.

Brady’s full response:

“While George F. Will fretted in his May 5 op-ed, “Treasury’s Fannie and Freddie rip-off,” that a few hedge fund managers are being ripped off because they can’t recoup their long-shot investments in Fannie Mae and Freddie Mac, the real focus should be on taxpayers.

“Fannie Mae and Freddie Mac have been in conservatorship for eight years because Congress and the administration lack the political will to enact needed housing finance reform. Last week, taxpayers came perilously close to once again having to bail out Freddie Mac after it reported a $354 million first-quarter loss.

“The status quo is unacceptable, resulting in uncertainty in the marketplace, limited private-sector participation and tight credit conditions for home buyers that are impeding the housing and economic recovery. A bipartisan group of senators in Congress and private-industry experts earlier this year advanced thoughtful plans that would protect the 30-year mortgage and preserve the federal support necessary for the proper functioning of the U.S. housing market.

“Policymakers must act now and use these proposals as a basis to fix our nation’s housing finance system. Otherwise, taxpayers will pay the price.